Part I The General Context, 3 Legal and Conduct Risk in the London Market

Subject(s):

Credit risk — Financial stability

This chapter reviews how the City of London and the English courts have dealt with legal risk issues. Bodies such as the Legal Risk Review Committee, Financial Law Panel, and Financial Markets Law Committee are now considered part of the ‘legal infrastructure’ of the wholesale financial markets. Also — and in a broad legal and conduct risk context — the rules, policies, and practices of the Financial Conduct Authority are of great, and growing, significance. Two highly influential bodies — The Banking Standards Board and the FICC Market Standards Board — are now tasked with defining and sustaining good practice standards for the banking and wholesale markets respectively, and to this extent, the work of these bodies will represent norms of behaviour that can be expected in the lawful discharge of duties.